At December 31, 2019 and 2020, New Corporation had outstanding 2,000 shares of P 100 par 6% cumulative and non participating Preference Share Capital and 10,000 shares of P10 par value Ordinary Share Capital. At December 31, 2019, dividends in arrears on the PS were P6,000. Cash dividends declared in 2020 totaled P22,000. How much is the total dividend allocated to Preference Share Capital?
Q: TJH Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price.
Q: SKIPPY Company reported the following amounts in the equity section of its December 31, 2019…
A: The retained earnings are the earnings of the business that are retained for the future purpose of…
Q: The shareholders' equity of Garnet Corporation on December 31, 2021 showed the following items: 8%…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share Capital Preference…
A: The purpose of making the Balance Sheet or the Statement of Financial Position is to present the…
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 6%…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: On the sale of treasury stock dated September 1, 2021, how much is the gain realized? On January 1,…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: At December 31,2018 and 2019, TJH Company had outstanding 4,000 shares of P 100 par value, 12%…
A: Preference shares are the investment securities which get fixed return in the form of dividends and…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: EPS means earnings available for each equity shareholder. Diluted EPS means when earnings of the…
Q: If income tax rate is 30%, how much is the diluted EPS for the year ended December 31 , 2020
A: Formula: Diluted EPS=Net Income-Preferred Dividend PaidWeighted Avarage No of common shares+…
Q: On December 31, 2021, EOS Co.'s shareholders' equity consisted of the following: 8%, cumulative…
A: Preference Share: - A share that entities the holder to a fixed dividend, whose payment takes…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Basic Earning Per share is Profit available for equity shareholders divided by Weighted no. of…
Q: The equity section of Gannon Oilfield Corporations balance sheet at December 31,2019 is shown below:…
A: Average price received for each issued preferred share = Issued and Outstanding preferred capital /…
Q: The capital structure of ABC Company at December 31, 2019 are as follows: 12% Preference share…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Affleck Company has the following types of outstanding shares at December 31, 2020: ·…
A: Dividend on 12% Preference Share = P4,000,000 x 12% = P480,000 Dividend on 10% Preference Share =…
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 6%…
A: Cumulative preference shares are those shares that are paid dividends for the past periods first, in…
Q: The Red Violet Company paid a total of P 610,000 dividends in 2020 to its 250,000 shares of P 10 par…
A: a) Order of payment Type of shares Total amount of dividend Calculations 1st…
Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…
A: In case of a company the shareholders are the owners of the company.
Q: The Shareholders' Equity of M. Gangoso Corporation at Jan 1, 2019, appears below: 8% Preference…
A: T-Accounts-: A T-Account is the graphic indication of a common ledger that documents a company's…
Q: BananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a…
A: Share premium refers to the excess amount received over the par value of the shares on the issue of…
Q: On April 8, 2019, GODLY Corporation declared and issued a 25% ordinary share capital dividend. Prior…
A: Dividend refers to the amount that is distributed to the shareholders as a reward for the profit…
Q: Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000…
A: The cumulative dividend is payable even if it is in arrears.
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Share premium is the amount received on issue of ordinary shares in excess of its par value.…
Q: At December 31, 2018 and 2019, Eagle Company had outstanding 4,000 shares of P100 par value 12%…
A: Preference Share dividend is the sum of arrears for 2018 plus the dividend for the year 2019.…
Q: McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances…
A:
Q: The cash dividends declaration on December 15 includes a debit to retained earnings of
A: As per our protocol we provide solution to the one question only and you have asked four multiple…
Q: On December 31, 2019 and 2020, Carr Company had outstanding 40,000 preference shares with P100 par…
A: Share Capital:- Share capital is considered as the money which a firm raises from selling ordinary…
Q: At December 31,2018 and 2019, ABC Company had outstanding 4,000 shares of P 100 par value, 12%…
A: Formula: Preferred dividend = Total preferred shares x PAR value x Rate of preferred shares.
Q: The following are the abstract of the shareholders' equity of Shake Shake Corporation as of December…
A:
Q: On December 31, 2019, JnT Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share (EPS) can be defined as the ratio of total net income available for common…
Q: On June 30, 2020, when JDE Co's share was selling at P 65 per share, its capital accounts were as…
A: Working note: Computation of share dividend: Share dividend=Share capital×Rate of…
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 12%…
A: Cumulative preference shareholders are paid dividend including the arrears before the payment of…
Q: basic earnings per share for preference shareholders
A: In respect of cumulative preference shares, dividend is accumulated until paid. Hence, the…
Q: As of Dec. 31, 2020, DM Corporation has 10% Preference shares (cumulative and participating) with…
A: Fully Participating Prefered Stock : They share dividend declared with common stock on pro rata…
Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…
A: Share premium (opening)=Preference+Ordinary=P 160,000+P 600,000=P 760,000
Q: At Dec. 31, 2018 and 2019, L. Pestano Corp. had outstanding 2,000 shares of P1,000 par value, 6%…
A: At Dec. 31, 2018 and 2019, L. Pestano Corp. had outstanding 2,000 shares of P1,000 par value, 6%…
Q: On May 1, 2020, ABC Corporation, a newly formed company had the following share capital issued and…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Stockholder's equity on 31 Dec 2020 Ordinary Share Capital Authorized 950,000 shares of…
Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price per share.
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 6%…
A: The preference shareholders have the right to get the dividend before any other shareholder get.
Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference…
A: 1. Share Premium - Share Premium is the amount received by the company over and above the par value…
Q: At December 31,2018 and 2019, ABC Company had outstanding 4,000 shares of P 100 par value, 12%…
A: Cumulative preference shares are those shares on which dividend amount is accumulated till the time…
Q: The Shareholders’ Equity section of Green Corporation at December 31, 2019 showed the following: 8%…
A: Annual Preferred Dividend = Preference Share Capital x Rate of Dividend = P2,000,000 x 0.08 =…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share indicates the net income of the firm after preferred dividend which is available…
Q: At December 31, 2019 and 2020, New Corporation had outstanding 2,000 shares of P 100 par 6%…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The capital structure of ABC Company at December 31, 2019 are as follows: 12% Preference share…
A: Shareholder's equity is the amount that has been contributed by the investors in a company over a…
Q: ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…
A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…
Q: Viel Corporation’s outstanding shares at December 15, 2020, consisted of the following: • 200,000…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: On December 31, 2021, EOS Co.'s shareholders' equity consisted of the following: 8%, cumulative…
A: Book value of preference share Where any interest or dividend is remained to be distributed for any…
Q: ABC Co. issued share capital of 20,000 shares, P5 par, at P10 per share. The accumulated profits on…
A: Treasury Stock refers to the company’s own outstanding stock bought back from stockholders. These…
At December 31, 2019 and 2020, New Corporation had outstanding 2,000 shares of P 100 par 6% cumulative and non participating
Step by step
Solved in 2 steps
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Cumulative Preferred Dividends Capital stock of Barr Company includes: As of December 31, 2018, 2 years dividends are in arrears on the preferred stock. During 2019, Barr plans to pay dividends that total S360.000. Required: Determine the amount of dividends that will be paid to Barrs common and preferred stockholders in 2019. If Barr paid $280,000 of dividends, determine how much each group of stockholders would receive.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.